Daily Forex Analysis – May 23, 2011

GBPUSD Analysis.
GBPUSD stays in a trading range between 1.6105 and 1.6302. As long as 1.6302 resistance holds, the price action in the range is treated as consolidation of downtrend from 1.6745, and another fall towards 1.6000 is still possible. On the other side, a break above 1.6302 will indicate that the fall from 1.6745 had completed at 1.6105 already, then the upward movement could bring price back to 1.6400-1.6500 area.

20110523_gbpusd_1

AUDUSD Analysis.
AUDUSD’s bounce from 1.0505 extended to as high as 1.0710. Another rise towards the trend line  from 1.1011 to 1.0888 could still be seen later today. However, the rise from 1.0505 is treated as consolidation of downtrend from 1.1011, downtrend is expected to resume after touching the trend line resistance.

20110523_audusd_1

EURUSD Analysis.
After touching 1.5339 resistance, EURUSD dropped sharply to as low as 1.4096. Deeper decline to test 1.4048 previous low support is possible later today, another rise towards 1.4500 would more likely be seen before breaking below 1.4048 support.

20110523_eurusd_1

USDCHF Analysis.
USDCHF formed a cycle top at 0.8945. The fall from 0.8945 would possibly be resumption of longer term downtrend from 0.9774 (Feb 11 high). Deeper decline towards 0.8553 previous low would likely be seen later today. Resistance is at the downtrend line on 4-hour chart, only a clear break above the trend line resistance could indicate that the fall from 0.8945 is complete.

20110523_usdchf_1

USDJPY Analysis.
USDJPY stays above the trend line from 79.58 to 80.36, and remains in uptrend from 79.58. As long as the trend line support holds, uptrend could be expected to continue and next target would be at 83.00 area. However, a clear break below the trend line support will indicate that the uptrend from 79.58 is complete, then the following downward move could bring price to 78.00 zone.

20110523_usdjpy_1

USDCAD Analysis.
USDCAD has formed a cycle bottom at 0.9639 on 4-hour chart. Further rise to test 0.9793 resistance is expected later today, a break above this level will indicate that the uptrend from 0.9444 has resumed, then next target would be at 0.9850 area. Support is at the trend line from 0.9513 to 0.9639, only a clear break below the trend line could bring price back to 0.9550 zone.

20110523_usdcad_1

Comments are closed.